NOVATO, Calif., Aug. 4, 2021 /PRNewswire/ -- Hennessy
Advisors, Inc. (NASDAQ:HNNA) reported results for its third
fiscal quarter of 2021, which ended June 30,
2021. The firm also announced a quarterly dividend of
$0.1375 per share to be paid on
September 2, 2021, to shareholders of
record as of August 17, 2021, which
represents an annualized dividend yield of 5.9%.*
"Through constant and often conflicting and confusing media
reports on the Delta variant, inflation, employment, interest
rates, and politics, we continue to see the financial markets rise
to new highs, which I believe is driven primarily by strong
underlying fundamentals," said Neil
Hennessy, Chairman and CEO. "There are so many positives,
including the return of outdoor events and increasing occupancy
rates in hotels. As hard as it is to say, it is even
encouraging to see the return of traffic after the quiet summer of
2020," he noted.
"The Dow Jones Industrial Average closed at a record high on
July 26, 2021, the economy grew at a
strong annual rate of 6.5% during the second calendar quarter, and
excess cash held by both consumers and companies appears ready to
be deployed. I see room for continued dividend hikes and stock
buybacks, which should support continued strength in the markets.
In my opinion, headwinds caused by short-term supply chain issues
and labor shortages should be offset by wage increases and improved
production output, allowing the U.S. economy to thrive," said
Mr. Hennessy.
"We are very pleased to report growth in assets under
management, income, and earnings this quarter, which I believe is a
testament to the determination and hard work of our team," said
Teresa Nilsen, President and COO.
"We maintain a healthy balance sheet and are happy to share our
prosperity with our shareholders via our quarterly dividend. We
continue to pursue opportunities to build Hennessy Advisors for
future success, through both organic growth and strategic
partnerships," she added.
Summary Highlights (compared to the prior comparable
quarter ended June 30, 2020):
- Total revenue of $8.5 million, an
increase of 24%.
- Net income of $2.2 million, an
increase of 26%.
- Fully diluted earnings per share of $0.30, an increase of 25%.
- Average assets under management, upon which revenue is earned,
of $4.2 billion, an increase of
20%.
- Total assets under management of $4.1
billion, an increase of 18%.
- Cash and cash equivalents of $14.0
million, an increase of 61%.
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|
Three Months Ended
June 30,
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Change
|
|
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2021
|
|
2020
|
|
Dollar
|
|
Percent
|
Total
Revenue
|
|
$
8,527,229
|
|
$
6,895,494
|
|
$
1,631,735
|
|
23.7%
|
Net Income
|
|
2,244,115
|
|
1,775,235
|
|
468,880
|
|
26.4%
|
Earnings Per Share
(Diluted)
|
|
0.30
|
|
0.24
|
|
0.06
|
|
25.0%
|
Weighted Average
Number of Shares Outstanding (Diluted)
|
|
7,431,925
|
|
7,279,294
|
|
152,631
|
|
2.1%
|
Mutual Fund Average
Assets
|
|
|
|
|
|
|
|
|
Under
Management
|
|
4,151,414,945
|
|
3,448,808,949
|
|
702,605,996
|
|
20.4%
|
|
|
|
|
|
|
|
|
|
|
|
As of June
30,
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|
|
|
|
|
|
2021
|
|
2020
|
|
|
|
|
Mutual Fund Total
Assets
|
|
|
|
|
|
|
|
|
Under
Management
|
|
$
4,117,560,103
|
|
$
3,491,767,647
|
|
$
625,792,456
|
|
17.9%
|
Cash and Cash
Equivalents
|
|
14,037,646
|
|
8,708,094
|
|
5,329,552
|
|
61.2%
|
|
|
|
|
|
|
|
|
|
* Based on the
closing stock price of $9.33 on August 3, 2021, and an annualized
dividend of $0.55 per share.
|
About Hennessy Advisors, Inc.
Hennessy Advisors, Inc.
is a publicly traded investment manager offering a broad range of
domestic equity, multi-asset, and sector and specialty mutual
funds. Hennessy Advisors, Inc. is committed to providing superior
service to shareholders and employing a consistent and disciplined
approach to investing based on a buy–and–hold philosophy that
rejects the idea of market timing.
Supplemental Information
Nothing in this press release
shall be considered a solicitation to buy or an offer to sell a
security to any person in any jurisdiction where such offer,
solicitation, purchase, or sale would be unlawful under the
securities laws of such jurisdiction.
Forward-Looking Statements
This press release
contains "forward-looking statements" for which Hennessy Advisors,
Inc. claims the protection of the safe harbor contained in the
Private Securities Litigation Reform Act of
1995. Forward–looking statements relate to expectations and
projections about future events based on currently available
information. Forward–looking statements are not a guarantee of
future performance or results and are not necessarily accurate
indications of the times at which, or means by which, such
performance or results may be achieved. Forward–looking
statements are subject to risks, uncertainties, and assumptions,
including those described in the sections entitled "Risk Factors"
and elsewhere in the reports that Hennessy Advisors, Inc. files
with the Securities and Exchange Commission. Unforeseen
developments could cause actual performance or results to differ
substantially from those expressed in, or suggested by, the
forward–looking statements. Hennessy Advisors, Inc. management does
not assume responsibility for the accuracy or completeness of the
forward-looking statements and undertakes no responsibility to
update any such statement after the date of this press release to
conform to actual results or to changes in expectations.
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SOURCE Hennessy Advisors, Inc.